The Hindu Business Line : Godavari Fertilisers, Coromandel merge

According to information provided by the company to the stock exchange, its shareholders will receive three equity shares of Rs 2 each in Coromandel Fertilisers for every two shares of Rs 10 each in Godavari Fertilisers.

According to company officials, the merger of the two Murugappa Group companies provides value in cost-saving in logistics and efficient market reach for the agriculture inputs.

Both companies make a varied range of phosphatic fertilisers and other chemical inputs for agriculture. With the merger, the production facilities have the flexibility to make any of the phosphatic fertilisers between them and supply them to the markets efficiently. After the merger also the brands of both companies will continue in the market, officials said.

Coromandel Fertilisers makes single superphosphate, complex fertilisers, sulphur and potash, apart from pesticides and specialty nutrients. Its brands are Gromor, Paramfos, Parry Super and Parry Gold. It has three product facilities at Ennore and Ranipet in Tamil Nadu and in Visakhapatnam in Andhra Pradesh. Its markets are in Andhra Pradesh, Tamil Nadu, Orissa and Karnataka.

Godavari Fertilisers’ products, marketed under the brand name Godavari, include Di Ammonium Phosphate and a range of complex fertilisers at its plant in Kakinada. Its markets are Andhra Pradesh, Maharashtra, Karnataka and Chhattishgarh.

Following the merger any of the production facilities can make the products and reach them to the markets. This provides a significant logistics advantage, the officials said.

More Stories on : Mergers & Acquisitions | Fertilisers

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